Research has shown that prolonged joblessness after graduation have a direct relationship to lower overall earnings and career prospects over the lifetime of the graduate. The same results can be observed when the grad gets stuck for a long time in low-paying jobs.
This is pretty important to remember, especially since 8.5 percent of all college graduates are unemployed. Better than 9.5 percent in 2010 but still way worse than 5.4 percent right before the recession hit.1
You might think the statistics are not so bad, but wait till you check out the statistics for wages and underemployment.
After adjustment for inflation, the wages for young college grads have dropped – not risen – by 4.6 percent each year from ’07 to ’11. Underemployed graduates, involuntary part-timers and those that have given up looking for jobs has averaged around 19.1 percent. That means nearly one in five students is earning less than their degree warrants or have simply up and given up on finding a job altogether.
And according to a study done by the Center for Labor Market Studies at Northeastern University, 40 percent of graduates that have settled for a job that doesn’t require a college degree in the first place. That was roughly 30 percent before the recession hit; showing a disturbing trend in the desperation of college grads to find decent and secure jobs.
This damage is not a one-off thing that will fade away in a few years. The average college graduate of America – our future – is entering society not as a productive and self-respecting adult, but a desperate slave to circumstances that is forced to reach at straws just to cover the bills.
We have given enough time and leeway to the banks, businesses and corporations to bring us prosperity, and certain right-leaning politicians believe that they will. They claim more tax cuts and deductions will allow these financial entities to rebuild our broken and battered economy. Left-leaning politicians believe that generous aid will allow grads to get back on their feet and build a better future for themselves.
Whatever the solution is, it has to be done now. The last thing we want is to create a generation of angry and frustrated Americans that are no longer willing to trust the government or corporation to work for their benefit.